Purchasing a home in a company name or trust
In Australia, finance and mortgage loans can be approved in company or trust names. Mortgage & property loans are available for properties that are purchased or refinanced in a company name.
Lenders who offer loans in a company name
There are quite a few lenders who offer loans in a company name. The lenders who offer loans in a company name are the following types of lenders:
Types of loans in a company name
All types of loans can be done in a company name. These include:
Why do people borrow in the name of a company?
Buying a property in a company name is a decision that clients undertake when they have considered all the factors unique to their own situation. There are a number of factors why clients put properties in the name of a company. These may include any of the following:
- Company is operating as a holding entity.
- Company is acting as a Trustee for a Trust.
- Clients opting to separate assets from their personal names.
- Isolating assets from other entities.
- Reducing exposure.
- Reducing personal risk.
- More flexibility in borrowing using company name.
- Non-coded policy (Non NCCP).
- Taxation purposes, and many more.
Refinance loans in company name
It is possible to refinance your loan in a company name with most lenders. In fact, loans in a company name are generally easier to get approved as they are non-coded and can be obtained from less stringent lenders because of policy flexibility.
Cost of borrowing in a company name
In most cases, the cost of borrowing in a company name is the same as the cost of borrowing in a personal name. You will also find that the set-up fees are generally the same too.
However, it’s worth noting that loans in a company name are either treated as business loans or investment loans. As such, loans in the name of a company can attract investment interest rate pricing. Your Mortgage Providers broker can navigate you through these cost distinctions between structures, and aim to get you approved using normal pricing mechanisms.
Company acting as Trustee for a Trust
In most scenarios, when a loan is taken out in the name of a company, the company is acting as a Trustee for a Trust type entity. Additionally, companies also act as holding entities within Self-Managed Super Fund loans as part of the structure. These type of trusts that involve companies can be either of the following:
- Discretionary Trust
- Hybrid Trust
- Unit Trust
- Self-Managed Super Fund Trust (SMSF) or Bare Trust
Property types in a company name
There are numerous property types that can be bought in a company name. These include:
- Display homes
- Company title
At Mortgage Providers, our brokers are very experienced and know which lenders to approach in order to obtain the best loan to get you the best outcome. Please call us to discuss your scenario when borrowing in a company name.